APPLICATIONS OF ARTIFICIAL INTELLIGENCE IN BANKING, FINANCIAL SERVICES & INSURANCE

 

 

With a vision of Digital India, AI can be used in India’s Digital Transformation. Both public and private sectors can use AI to improve upon the services that are offered to consumers. Reducing the cases of fraud can be possible with the help of AI platforms. In this blog, we will see how NEC’s AIPF solutions can help BFSI companies.

 How can AI help banking, finance & insurance?

AI is slowly becoming an integral part of our lives, and the banking and finance sector has already started integrating this technology into their products and services. AI-based solutions can help the sector in the following ways.

• Cyber-security and fraud detection – AI can help improve the security of online finance, track the loopholes in the systems, and minimize the risks. AI, along with machine learning, can easily identify fraudulent activities and alert customers as well as banks.

• Chat-bots – They can work 24*7, unlike humans who have fixed working hours. They also keep on learning about the usage pattern of customers helping the bank to understand their requirements in an efficient manner.

• Loan and Credit Decisions – AI-based systems can make more informed, safer and profitable loan and credit decisions.

• Tracking market trends – AI in financial services helps banks to process large volumes of data and predict the latest market trends.

• Data collection and analysis – Structuring and recording data helps in the detection of fraud.

• Customer Experience – AI technology can reduce the time taken to record Know Your Customer (KYC) information and eliminates errors.

• Risk Management – AI helps in finding risky applications by evaluating the probability of a client failing to pay back a loan.

• Regulatory Compliance – AI uses deep learning and NLP to conform to regulatory compliance's.

NEC’s AIPF solutions for BFSI

AI-based solutions developed by NEC can help BFSI improve the services that are offered to customers. The products given below will give an idea of how NEC’s AIPF solutions can help BFSI companies.

NeoFace – NeoFace is NEC’s flagship face recognition AI engine. With NeoFace, a bank’s customers can log in with their faces and a one-time mobile password to use ATM services. The biometric solutions can also be used to open bank accounts. Online account registration is possible only by sending one’s selfie and a copy of identity documents. These pieces of documents will be cross-checked before being approved by the bank. Physically visiting a bank to get an account opened will not be required. Banks can avoid heavy paperwork and reduce their workload by using the biometric solutions of NEC.

Health Insurance Claim Fraud Analytics – NEC’s health insurance fraud analytics solution helps insurance companies combat fraud with effective claim segmentation and accurately analyzing the signs of fraud before a claim is paid, thus improving the percentage of genuine transactions, increasing customer satisfaction, and significantly reducing the costs associated with fraud claims investigation.

Auto Insurance Fraud Analytics Solution - Powered with artificial intelligence (AI) and Machine Learning (ML), NEC Auto Insurance Fraud analytics solution offers a proven end-to-end solution to detect, prevent and manage frauds across the auto-insurance industry.

What are the benefits for the customers?

AI can play a major role in India’s Digital Transformation. Myriad benefits can be ensured for BFSI customers. AI-based bio-metric solutions will make contactless payments possible for customers of banks. They will be able to withdraw money from ATMs using their face as their identity. Seamless services for customers, particularly during on-boarding, have become a necessity for the survival of banks. However, there are regulatory guidelines to be followed. A number of screenings, including identity verification, transaction monitoring and Anti-Money Laundering screening of the customers, are needed before an account is opened. Therefore, AI-driven bio-metric solutions are required to improve customer experience and also to avoid compliance penalties.

Conclusion

Banks can use AI-based systems to make their services customer-friendly. AI can help in combating fraud in BFSI as the number of customers has grown manifold. In addition to this, providing a better experience to the customers is also possible with the help of AI. Fraud in the insurance sector is quite common. Analytics that use AI can help insurance companies detect fraudulent activity with unprecedented ease.